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1.5 Billion for Five Struggling States

By
Real Estate Agent with Real Estate One

I have included below an article about the 1.5 Billion dollars Obama said he was designating from the Troubled Asset Relief Program to fund programs at local housing finance agencies in California, Florida, Nevada, Arizona and Michigan, which have seen home prices decline more than 20 percent from their peaks.

1.5 Billion Allocated for Five Struggling States -  Florida, Michigan, California, Nevada, and Arizona

I am a licensed Associate Broker in both Florida and Michigan....  www.KayPearson.com and can say that both states have seen 40 - 50% declines in house values, at least in the markets that I represent.  Our most recent tax assessments received in Michigan for 2010 support that as well.

Help for the Hardest Hit Housing Markets
THE WHITE HOUSE
Office of the Press Secretary
FOR IMMEDIATE RELEASE February 19, 2009

These bailout programs make a statement but are they a solution?  Frankly, I think that band-aids were invented to stop the bleed.  Nothing, thus far, has proven to provide such an aide.

  • WHY is money thrown on the table without accountability first?

I was anxious to see what this plan had that might provide further HOPE than the HOPE we have been offered previously. (Less than 10% of home modifications have been completed)...How many resources have been spent?  Actually, money could have been saved if all those denied modifications were not even attempted.  What amount of money was wasted?
 
How much money will be wasted figuring out how to best use this money?

I currently have two clients who have 700+ credit scores, growing families, and want to buy bigger houses in Michigan but they don't have $50,000 liquid cash to close the first deal to buy the second home.

Why don't we have an incentive program for people who DO NOT have a HARDSHIP (by mortgagee definition)?  Perhaps their current lender could shave a portion of their pay-off needed to bridge them into the bigger home.  Wouldn't that help our housing market?  We have many qualified, willing buyers, who want to buy in price brackets that are plummeting. 

How about we work with some willing, able buyers, who want to help our housing market?

     Waterford Home for Sale ~ $100,000

 With all that rambling and NO solution, I have another thougth.  Both of the clients that I have referred to in this blog are financed with the same lender, a large known "Holding their Own" lender.

I am going to make some calls to talk to them about their inventory or current delinquencies to see if we might be able to discuss a trade.   Don't they still WIN?  We might even find a WIN ...Win.

The Pearson Group
Robin Cutler and Kay Pearson
248-860-0366
RobinCutler@RealEstateOne.com
KayPearson@MaxBroock.com

Loan Survivor Real Estate Financing Expert
Purchases, First Time Buyers, Pre-Approvals, Refinance - Birmingham, MI

Did you know that if a homeowner gets their first mortgage modified, then if their second lender is participating in HAMP, they MUST modify that second mortgage?  Furthermore, one of the ways the second lender can choose to modify their loan is to have the federal government give them a lump sum payment of 3-12% of the balance.  Read more at my blog, www.DrewsMortgageNews.com:)

BTW - glad to see your back to blogging!

Mar 15, 2010 03:13 PM